5. The cost price of an item is R180 and the selling price is R400. If a \( 75 \% \) discount is given on the selling price. Would the seller make a profit or a loss on the sale? Show your workings.

**Step 1: Calculate the Discount Amount** The discount given is \(75\%\) on the selling price of R400. The discount amount is calculated as: \[ \text{Discount} = 0.75 \times 400 = 300 \] **Step 2: Determine the New Selling Price** The new selling price after the discount is: \[ \text{New Selling Price} = 400 - 300 = 100 \] **Step 3: Compare with the Cost Price** The cost price of the item is R180. Since the new selling price is R100, we calculate the profit/loss as: \[ \text{Profit/Loss} = \text{New Selling Price} - \text{Cost Price} = 100 - 180 = -80 \] **Step 4: Conclusion** Since the profit/loss calculation gives \(-80\), this indicates a loss of R80. Thus, the seller would incur a **loss** on the sale.